Hello all,
I have had many sleepless nights for the past few weeks thinking if I should declare bankruptcy or not.
This is what I owe:
Credit Cards: About $15,000
Personal Loan: $2600
Car Loan: $25,000
Mortgage: $73,500
The above balances are very close to the actual balances.
I take home about 1920 after taxes/medical/dental/vision/401(k) are taken out.
I talked to a credit counselor yesterday and she suggested bankruptcy also. We came out to the point that I spend about $1,950 in expenses NOT including the debt loans.
How this works is for example if I pay the minimum payment on one of my credit cards ($50) and I need to pay the cable bill of $50 I would pay the credit card and thus paid the credit card and also paid the bill, so basically knocking out two bills with one payment.
I know this is not right but its the only way Im keeping afloat.
Ive been thinking about declaring bankruptcy and getting rid of the credit cards and personal loan. Even though I would love to keep my car I dont think I would be comfortable with a $582 payment each month.
About my car loan. My previous contract at 72 months at 5.9% which is about $489/month I recently refinanced to a 48 month 3.75% which is about $582/month. I should say that I had paid a year on my car before I refinanced.
Would I be able to get rid of everything except the house?
The house is something I am not ready to lose as its only a $350 payment which is better than going out and renting some place for $700-$800/month.
One more reason I would like to declare bankruptcy is because I am currently 22 years old. And my way of thinking is this: If I declare bankruptcy now it will be off my credit report by the time Im 32 which is still young to me and that way I can buy a bigger house later on in life.
Any thoughts?
Thanks
I have had many sleepless nights for the past few weeks thinking if I should declare bankruptcy or not.
This is what I owe:
Credit Cards: About $15,000
Personal Loan: $2600
Car Loan: $25,000
Mortgage: $73,500
The above balances are very close to the actual balances.
I take home about 1920 after taxes/medical/dental/vision/401(k) are taken out.
I talked to a credit counselor yesterday and she suggested bankruptcy also. We came out to the point that I spend about $1,950 in expenses NOT including the debt loans.
How this works is for example if I pay the minimum payment on one of my credit cards ($50) and I need to pay the cable bill of $50 I would pay the credit card and thus paid the credit card and also paid the bill, so basically knocking out two bills with one payment.
I know this is not right but its the only way Im keeping afloat.
Ive been thinking about declaring bankruptcy and getting rid of the credit cards and personal loan. Even though I would love to keep my car I dont think I would be comfortable with a $582 payment each month.
About my car loan. My previous contract at 72 months at 5.9% which is about $489/month I recently refinanced to a 48 month 3.75% which is about $582/month. I should say that I had paid a year on my car before I refinanced.
Would I be able to get rid of everything except the house?
The house is something I am not ready to lose as its only a $350 payment which is better than going out and renting some place for $700-$800/month.
One more reason I would like to declare bankruptcy is because I am currently 22 years old. And my way of thinking is this: If I declare bankruptcy now it will be off my credit report by the time Im 32 which is still young to me and that way I can buy a bigger house later on in life.
Any thoughts?
Thanks
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